AFTER 100 DAYS OF NEW GOVERNMENT

NO KHUSHI, STILL GHAM

FOR BANK EMPLOYEES
By
S.SRINIVASAN
Retired Bank Unionist
OUR STAND OF 25% HIKE IS JUST AND SACROSANCT! PART IV!
CONCLUSION
WAY FORWARD
The goal of my dissertation in this approach paper is to enhance the awareness
of the bank employees and their well wishers to generate in!iring minds" with
#iew of gal#ani$ing strategies to settle the present impasse in the on going %&
bipartite negotiations. 'y goal is to prepare and merge their hearts and minds
to resist" rep!lse the intransigence of IBA ()o#ernment combine in denying
o!r *!st wage re#ision by considering o!r demand of minim!m +, - that too in
pay slip components as against the tradition till .
th
bipartite of settling wage
load on establishment e/pendit!re.

I ha#e to the best of my ability en!merated things and e#ents from an historical
perspecti#e. This paper for ob#io!s reasons cannot be a f!ll commentary of
the finished and !nfinished tasks we ha#e.
I am not merely pro or anti establishment. 0n the contrary I know that we am
a #ital section of this establishment o!rsel#es and !nlike most other sections of
the establishment I want to de#elop and dri#e a self critical and critical
#iewpoint with #iew of generating thinking " en!iring minds" enhance
awareness and learning. In this process we learn" !nlearn and relearn. It is
with this sole ob*ecti#e this approach paper is presented. To me Ser#ing the
interest of o!r members and contrib!ting to the de#elopments of a free
democratic trade !nion in the co!ntry is the goal that I had fi/ed to myself . .
This is my g!ide for the present and #ision for f!t!re 1 a free comm!nity of
trade !nions2 independent b!t interdependent" non political b!t politically
critical" !niting one great family of working class" o!tgrowing and
transcending the hates and fears that rend o!r age. I will not reach that goal
%
today or tomorrow. I may not reach the goal in o!r lifetime. B!t the !est is
one of the greatest ad#ent!res I wish co!ld !ndertake.
Somebody was reported to be telling that something is better than nothing.
Nothing" if nothing happens" b!t e#erything possible sho!ld be e/plored" and
for that e#erybody sho!ld be prepared. 3hen nothing is pro*ected as
e#erything" anybody can !nderstand that something is wrong somewhere. 0f
co!rse the fa!lt lies with IBA. They leak o!t some places of information and
somebody loyal to them e/aggerates things and tries to mislead bank
employees. So in this paper I ha#e *!stified o!r demand !nder 4 s!bheadings
with some statistics" which *!stify a better deal for Bank 5mployees in the
ongoing %& bipartite.
We have narrated till now in justifications 1 to 6, back with rationale,
logic, and in a historical perspective what we have been able to do and
what remains to be done. We should self critically evaluate our
performances, our positive sides as well as our deficiencies and only then
can we amend our shortfalls and strengthen ourselves
I consider it highly essential for the yo!ng generation of Bank employees to be
con#ersant with the history of Bank employees6 Trade Union 'o#ement. It is a
matter of pride that the pioneers in the history of Bank Employees !rade
"nion #ovement the first and foremost among the Bank$ Employees
!rade "nion #ovement was !he %mperial Bank of %ndia %ndian &taff
'ssociation that was formed in 1()* much before the advent of %ndian
!rade "nions 'ct in 1()6 itself .A glimpse of the glorio!s history of the bank
employees mo#ement is replete with facts from A!g % till midnight of Sep %,"
%.74 the Strike in Bengal 8ircle stretching from 8hittagan* in North and N95
India to :eshawar in North93est in the s!b9continent in ;&& branches and pay9
offices in#ol#ing 4.%&& employees under the banner of %mperial Bank of
%ndia %ndian &taff 'ssociation. Before la!nching the strike action employees
made repeated appeals to the bank to stop ded!ctions of %,- <%&=,-> from
pay. The 'onthly pay bill of 4.%&& employees 1 Rs. +.?&.&&&(9 i.e. a#g. Rs.
77(9 per head <e/cl!ding @.A.>. B!t that of only 7+ white officers <lords> 1
A,.&&&(9 i.e. a#g. Rs.+.+4&(9 per head <e/cl!ding @.A.>. So the ratio %B more
than ,%.
!heir demands for strike action were$
+*, -%&E %. /'0 <In %.;% the management effected a c!t of %&- on
:ay on the plea of recession and a f!rther c!t of ,- towards :ension C!nd>
Rescinding of ,- c!t towards :ension C!nd
Dea#e r!le as a#ailable to )o#t. employees
+
'edical Treatment at BankEs cost
:romotion :olicy
)rat!ity to those depri#ed of :ension
Specific working Fo!rs
@earness Allowance as per cost of Di#ing
:roper 5n!iry before entering ad#erse comments in the ser#ice record etc.
Corm %.,& to %.4+ o!r ser#ice conditions were settled in Ind!strial trib!nals.
Beca!se of the bitter e/perience before the Trib!nals from %.7. to %.47"
!nion demanded direct negotiations and collecti#ely bargained settlement to
decide the wages and ser#ice conditions of bank employees. They
l a!nched powerf!l agitation in %.47" %.4," %.44 incl!ding the famo!s
Gwork9to9r!le mo#ementE d!e to which the )o#ernment and the bankers had
to concede the demand and the first ever industry 1 level bipartite
settlement was signed on 1(21*21(66. @!e to efforts of the !nions the
principles of collecti#e bargaining between IBA < organisaton of the
employers in banks > > and ape/ body of all India !nions in the banking
ind!stry and settling disp!te bilaterally and thro!gh dialog!e came to
#og!e instead of the go#ernment inter#ention in the matters pertaining to
employment conditions and ind!strial relations" Since then" periodical
Bipartite Settlements ha#e been entered into between IBA and !nions " the last
one being the .
th
Bipartite Settlement signed on +?9&79+&%&. !hus bank
employees can be justly heralded are precursors for introduction of era of
bipartism in other industries, more so in /ublic &ector "ndertakings in
%ndia.
A ob*ecti#e st!dy of The collecti#e bargaining agreements in p!blic sector
!ndertakings incl!ding banking sadly re#els that are always applicable to all
the permanent workers irrespecti#e of whether they are formal members of the
!nion or not. Fowe#er" the cas!al workers" which comprise abo!t +& per cent
of the workforce" are not bo!nd by the collecti#e bargaining agreements.
UnionsE right to collecti#e bargaining has had its !ps and downs. The
managementEs had their own ass!mption abo!t the legitimacy and role of
collecti#e bargaining and therefore the tr!e spirit of freedom of association and
collecti#e bargaining has been missing for many years. Some agreements ha#e
cla!ses that are detrimental to the interests of workers and workers feel that the
#ario!s cla!ses are a sello!t. Both !nions and workers ha#e resigned to the fact
of the ascendancy of the management.
The history of collecti#e bargaining also highlights that the management as
well as the !nions ha#e always operated with a win lose strategy and both the
parties ha#e attempted to B'- the 3'%. <rather than bargain> of each
;
other. As a res!lt" there ha#e been #ario!s strikes. In their absence the ind!strial
relations ha#e been far from peacef!l. The managementHworkers and earlier
!nion members allegeHdoes not accept the idea of collecti#e bargaining in its
tr!e spirit.
Even in the ongoing negotiations in the 1* bipartite we find this unhealthy
bar the gain trend, against the ethos of true biapartism. While the
unions have reduced their demand from 4* , 5see the 6indu business
line 7anuary, 16, )*1+ http$88www.thehindubusinessline.com8industry2
and2economy8banking8wage2revision2talks2bank2unions2may2demand2
4*2pa9, %B' a has moved an inch from 1* , to 11 , only during the
last round of negotiations on 14262)*1+. !here after stalemate
continues.
!hereafter we find a spectacle of negotiations across the table totally
stalled, put to comatose and is replaced with e:change of three letters
between the parties much to disgust and disenchantment of the bank
employees. !hus the 1*th industry2wide bipartite wage settlement
negotiations in the banking sector have dragged on for more than one2and2
a2half years now without making much headway.
Trade !nion members are not only workers" b!t also cons!mers and citi$ens. As
workers they e/pect !nions to defend their rights and interests at work. As
cons!mers they are not content if the !ality is shoddy or inconsistent"
prices are !nreasonable" s!pply erratic and attit!des of staff reprehensible.
As citi$ens they want their rights abo#e other workers rights. As members
of the comm!nity they want the go#ernment to set things in order" stem
poll!tion and c!t red tape. Th!s today trade !nions ha#e additional
dilemmas beca!se their members wear different hats. In the enterprise
where they work" they are affected employees seeking to protect and
defend the rights and interests as employees" or they look at iss!es thro!gh
the eyes of a cons!mer or member of the comm!nity. 3e will be isolated if
we merely and narrowly p!rs!e the selfish sectional interests of the
members at the enterprise. 3e sho!ld therefore fit in the role of aligning
o!r members with the interest of those of the immediate comm!nity and the
wider society.
It is time trade !nions in banking ind!stry look at changing role of trade !nion
with regard to its m!ltiple stakeholders in the wider societyB go#ernment"
employers" members" cons!mers" comm!nity" non9go#ernmental organi$ations
and other ci#il society instit!tions and makes a case for demand of +,- hike
by making for broader coalitions and wider networking with social media"
networking sites of bank employees and for the bank employees to be able to
7
make an impact. There is impetrati#e need to forge alliances establish broad
alliances with #ario!s instit!tions in the ci#il society. And abo#e all there is
!rgent need to form a real !ntied for!m" !niting all the !nions in adapting a
common strategy for str!ggle in f!lfillment of this demand and break the
ongoing stalemate.
)o#ernments" IBA or Bank !nions acting alone cannot achie#e economic
prosperity" stability and social progress to which p!blic sector banks stand for.
Social dialog!e pro#ides social partners in the negotiation table and other
stakeholders with the opport!nity to participate in deciding their f!t!re. The
aim of this participation and cooperation is to facilitate agreements on a
m!t!ally acceptable combination of *!st wages" progress of banks to s!bser#e
the ob*ects of progressi#e pro#isions of reforms" economic and social
progress" social sec!rity" stability and e!ity. ;nly a meaningful dialogue is
regarded primarily as a means aimed at achieving these goals. %t is an
effective tool for solving collective challenges by creating the structure and
environment suitable for more efficient problem2solving. In other words" it
is abo!t facilitating constr!cti#e interaction in order to arri#e at social
consens!s(compromise among the stakeholders in the banking system.
The imperati#e need now is that that both the IBA and negotiating !nions
bring o!t paradigm shift" reorientation in their #al!es and beliefs while dealing
with each other to end the stalemate " impasse and mo#e
Crom To
S!spicion Tr!st
8onfrontation 8ollaboration
Cinding fa!lt with each other Respecting oneEs own fa!lts
@isregarding each other Respecting one another
Self centered '!t!al benefit
Dow credibility Figh credibility
Being biased Becoming ob*ecti#e
Taking a stand and being closed 5/amining possibilities and being open
)etting lost in tri#ial details Setting ones own priorities
8!stomer insensiti#e 8!stomer sensiti#e.
%t has to be reali<ed that a W%.2 =;&E option only leads to stagnation,
which hampers growth. %n the current scenario one cannot afford to
stagnate. ;n the contrary if every issue can be addressed objectively,
keeping in mind the interest of the bank, the solution is going to be an
obvious outcome which would further lead to growth of our organi<ation.
' W%.2W%. process leads to progress and growth of the organi<ation,
,
which benefits the management and union. I am confident this model to be
adopted by the parties in the negotiations cannot be re*ected for its simplicity"
for what each one of !s need to !nderstand is that there is a simple way o!t to
comple/ problems but the problem with us is that we can !nderstand simple
things only when they are presented in a comple/ way.
!his healthy model in %- suggested by me is not new. %t was propounded
by 7ustice >antilal ?esai in 7une 1(6) 5/ara @.14A to @.1+). of ?esai
'ward9 which % am appending below.
B!he .eed Cor 3ood %ndustrial -elation 'nd Cair Wage &tructure %n !he
Banking %ndustryD
The industry of banking does not produce goods but produces services. It is
an extremely important services which is rendered by banks and on the
continued and efficient functioning of banks depends the smooth functioning of
a large number of other industries, in the country. In order that the economy
may develop and other industries may function smoothly, it is necessary that
the industry of banking should also develop to meet the growing needs of the
country. Banking has to be regarded as a public service and its activity to a
certain extent is being regulated in the public interest. There are various
provisions in the Banking Companies ct !"#" and in the $eserve Bank of
India not relating to the regulation to work in a more or less rigid frame work
set by law. The depositing and investing always play for safety for its deposits
and stability for its investments. %rudent banker not merely provide for what
are sometimes known as secret or undisclosed reserves but provide for easy
li&uidity of some of its assets in order to meet any emergency. They also
consider the advisability of following the policy of maintaining stable
dividends. 'very effort has to be made to gather the confidence of the public
and the depositors so that the working funds and operations of the bank may
grow.
The stability of the industry depends upon the overriding factor of credit. The
banks are very often described as delicate instruments of credit. The failure of
the bank has its repercussions on the other banks and on the deposits made
with other banks. (reat care is re&uirement to inspire the confidence of the
public. )eposits received by the banks constitute, to a very large extent, the
raw material for providing advances to persons needing the same. Bank
unlike a manufacturing concern obtains a very large proportion of its working
funds from the depositors and only a small proportion from its share holders.
In considering the capacity of the industry of banking to bear the burden of
increased wages which may be re&uired to be paid having regard to the
4
workmen*s claims based on social +ustice, it is necessary to bear in mind the
claim of the share holders to a fair return on the capital invested by them.
Banking is one of the key industries in the country. The successful
implementation of the ,ive -ear %lan depends to a considerable extent on the
successful operation in banking in the country. It is re&uisite that the available
resources of the country should be harnessed for the successful implementation
of the ,ive -ear %lan. Banks have an important role to play in purposes. It is
necessary that the banking habit should spread throughout the length and
breadth of the country so that the unused wealth of the country is not merely
gathered but is put to effective use. The dependence of commerce upon banking
has in modern times become exceedingly great and matters have reached a
stage where the cessation for some length of time of banking activity may
paralyse to some extent the economic life of the nation. Bankers issue credit,
exchange of currency. Banks assist the industrial undertaking by underwriting
their debentures and shares and occasionally finance the purchase of real
property. Banks serve as custodians of stock and shares and other valuable.
Imports into and export out of the country are financed by banks and
documents relating to the goods so imported and exported pass through the
hands of the Bankers. They have deal with warehouse warrants, bills of lading,
railway receipts, bills of exchange, marine insurance and various other
documents. They advance money on securities and issue letters of credit and
travelers che&ues to customers. The functions which the bankers discharge are
numbers and varied. The transactions on the stock 'xchange may be affected
by the policy adopted by banks in connection with the advantage on shares and
securities. Transactions of purchase and sale of various commodities may be
affected by the policy adopted by banks in connection with the advance on such
goods. 'xpansion or retraction of credit may affect financing of various
transactions. The smooth functioning of banks is necessary for the economic
growth and welfare of the country. %eace in the industry is re&uisite for the
economic progress of the country at the pace set by the Third ,ive -ear %lan..
/aving regard to these factors, wage scales have to be fixed such that it should
not be unduly below the paying capacity of the Bank at the top of class nor
unduly above the paying capacity of the bank at the bottom of class which is
reasonably well managed. 0ne does sometimes come across banks in private
sector which continue to function for number of years without distributing a
nays paisa by way of dividend, which do not show any substantial profits or
which show even losses for number of years without any special reason, when
other banks functioning in the same region with smaller working funds and
reserves make considerable profits. 1uch banks which continue to exist for
various reasons peculiar to those who run the banks cannot be taken into
account to depress the wages of class in which such banks fall. It would be
?
putting a premium on the existence of unhealthy banks if they are encouraged
to continue their activities by the incentive of lower wages..
9 I!stice Jantilal @esai I!ne %.4+ <:ara ,.%;A to ,.%7+. of @esai Award
8hief I!stice of the Figh 8o!rt of )!*arat
%f this approach paper serves the purpose of ending the deadlock,
resurrection of negotiations, and e:pedite settlement, my objective of
presenting this practical approach paper shall be served.
In wo!ld like to end this approach paper with an inspiring anecdote which my
opinion is the way forward for !nions.
0nce the five fingers, which normally shared a warm friendship, got into a
serious argument. 0f course, the sub+ect is the same old one that has been
plaguing all living things since the dawn of Time 2 namely who is the biggest of
them all. The Thumb responded first with a contemptuous look on its face and
with a perceptible sneer wondering why there should be an argument at all
about it. 3ithout me., the thumb said, you guys are powerless. Try doing
anything without my support and you will know4. The middle finger laughed
out aloud at this statement and said -ou pygmy4 I am the tallest here and
strategically placed at the middle. /aven5t you seen that in any group photo,
the most important person occupies the middle seat6 )o I need to say anything
more6.
The ring finger listened to all this with a disinterested yawn. /e looked around
him with the kind of authority that only the affluent could afford to exhibit and,
flaunting his expensive diamond ring set in platinum, said, -ou guys seem to
forget that I give you all the status that you en+oy. ll of you get noticed only
because of me4. The mercurial index finger was furious at this preposterous
statement. 1tatus, my foot. he thundered. )on5t you guys know that when
our man is roused to fury, he uses me to put his adversary in his place6 nd
when someone seeks his direction, he uses me again to show him the right path
to take. I am the symbol of his power and authority., he said. ll fingers now
turned to the little finger to hear what he had to say. The poor fellow who was
listening to all others had now shrunk to half of his si7e with shame and
remorse. /e could feel the look of ridicule around and he started crying.
8ext morning, the owner of the fingers went to a temple and stood before the
9ord in prayer with folded hands. s the ringing of bells and drums reached a
crescendo, the 9ord appeared before the little finger and smiled at him. The
other fingers may be big in their own way but you are the closest to me when
your man stands before me with folded hands. )o you want to be bigger than
A
that6. /e asked the little finger smilingly. The little finger5s heart overflowed
with +oy and when he wept this time, it was with tears of +oy4
:ust like 'very individual has a place to fill in the world, and is important in
some respect, whether he chooses to be so or not, every negotiating unions in
the banking industry are important entities by itself. ny call for preparedness
for total unity and struggle beyond mere verbosity and rhetoric has become
more meaningful and pronounced today than ever before in view of prolonged
stalemate.
%f only all 11 negotiating unions endeavor to build broadest possible
unity amongst the members, commonality of perception and perfect amity
assiduously built up everywhere through democratic methods by free
and uninhibited e:change of views and thereby making bank employees
unity still stronger ,nothing , no power can countervail bank employees
march to victory.
'diosE 3ood =uck to all Bank EmployeesE
B;ur "nity and &olidarity is our -aison dFtreD
.